BTCUSD is showing bullish tendencies. It has shaken off the overhang from the FTX collapse, responding to the moderation in US inflation.
Between August 2021 and May 2022, BTCUSD charted a head and shoulders distribution pattern (red rectangle). Price then capitulated and moved into a mark down phase. BTCUSD traded below its 150-day exponential moving average (EMA) and the EMA headed down.
Recent price action has the cryptocurrency above its 150-day EMA, and the EMA is turning up. It has spiked above $21,000. It's possible that the sideways movement since June 2022 has been a large accumulation pattern (green rectangle).
Volume patterns, whilst not perfect because of cryptocurrency decentralisation, do hint at this. The OBV has broken a down-sloping trend line with a large volume spike as BTCUSD is snapped up. There is a perceived value perception, because of the expected Fed pivot during the middle of 2023. This is risky. If the Fed pivot does not materialise, crypto's could be sold off.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.